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Earnings & Payouts

Understanding payment release, payout methods, and tax documentation

Last updated Jan 25, 2025 • 18 min read

How Earnings Work

PayHeld uses a secure payment protection system to ensure you get paid for completed work. Here's the complete flow from project completion to money in your bank account.

Complete Earnings Flow

1
Client Accepts Proposal

Client pays via Stripe → Funds immediately secured → You see "Payment Secured" status

2
Work in Progress (ACTIVE)

Funds remain secured while you work → Protected from chargebacks → Client cannot withdraw

3
You Deliver Work

Upload deliverables → Status changes to DELIVERED → Client has 5 days to review

4
Client Approves (or Auto-Approval)

Client manually approves OR auto-approval after 5 days → Payment release triggered

5
Platform Fees Deducted

FREE tier: 5%, PRO: 0-2.3%, BUSINESS: 0-1.4% deducted → Net earnings calculated

Payment to Your Account

Net earnings transferred to Stripe Connect → 2-7 days to bank (or instant with PRO)

5 Days

Auto-approval window

0-5%

Platform fee (tier & volume based)

2-7 Days

Standard payout time

<30min

Instant payout (PRO)

Understanding Payment Release

Payment protection ensures you get paid for completed work. Funds are held securely until work is approved, then automatically released to your account.

When Does Payment Release?

Client Manually Approves

Client reviews your work and clicks "Approve" → Payment released immediately → You receive email notification

5-Day Auto-Approval

If client doesn't respond within 5 days → Automatic approval → Payment released without client action (protects freelancers)

Milestone Completion

For milestone-based projects → Each milestone releases its secured portion upon approval

What Happens After Payment Releases?

1
Platform Fee Deducted

PayHeld automatically deducts platform fee based on your tier:

• FREE tier: 5% platform fee
• PRO tier ($29/mo): 0% on first $2K/mo, then 2.3%
• BUSINESS tier ($99/mo): 0% on first $10K/mo, then 1.4%
2
Transfer to Stripe Connect

Net earnings (project amount - platform fee) transferred to your Stripe Connect account

3
Payout Processing Begins

Stripe processes payout to your bank account (2-7 business days for standard, <30min for instant)

4
Email Confirmation

You receive "Payment Processed" email with payout details, arrival date, and transaction ID

Your Payment Is Guaranteed

Client cannot withdraw funds once secured
Protected from chargebacks and disputes
Auto-approval if client disappears
PayHeld guarantees payment for delivered work

Payout Methods

Choose how you want to receive your earnings. Each method has different fees, processing times, and benefits.

Payout Methods Comparison

MethodFeeSpeedBest For
Stripe Transfer (Standard)
FREE2-7 daysMost users ⭐
Instant Payout (PRO)
2.5% + $1.50<30 minUrgent needs
Instant Payout (BUSINESS)
1.5% + $1.00<30 minHigh-volume users
Platform Wallet
FREEInstantActive users
PayPalComing Soon
$0.99InstantInternational
Wire TransferComing Soon
$253-5 daysLarge amounts ($5k+)

Stripe Transfer

Recommended

Direct transfer to your bank account via Stripe Connect. The default and most reliable method.

Fee
FREE

Stripe covers ACH fees

Processing Time
2-7 business days

Typical: 3-4 days

Requirements
Stripe Connect

Verified account + linked bank

Instant Payout

PRO/BUSINESS

Get your earnings in under 30 minutes. Available to PRO and BUSINESS tier members.

PRO Tier Fee
2.5% + $1.50

Example: $1,000 → $23.50 fee

BUSINESS Tier Fee
1.5% + $1.00

Example: $1,000 → $16 fee

Processing Time
<30 minutes

Usually within 15 min

Platform Wallet

Smart Choice

Keep funds in your PayHeld account for instant access. Use to pay subcontractors or withdraw later.

Benefits of Platform Wallet:
Instant fund availability (no waiting)
FREE wallet-to-wallet transfers
Pay subcontractors instantly
Bulk withdraw monthly (save on fees)
Example: Complete 10 projects → Keep funds in wallet → Withdraw once at month end = 1 payout fee instead of 10

Stripe Connect Setup

Stripe Connect is required to receive payouts. It's a secure payment infrastructure that handles transfers to your bank account.

Stripe Connect is Required

You cannot receive payouts until Stripe Connect is fully verified. This usually takes 1-3 business days after submitting your information.

Step-by-Step Setup Guide

1
Go to Settings → Payments

Navigate to your account settings and click on the "Payments" tab. You'll see "Stripe Connect Setup" section.

2
Click "Connect Stripe Account"

You'll be redirected to Stripe's secure onboarding page. PayHeld never sees your sensitive information.

3
Provide Required Information
• Legal name (individual or business)
• Date of birth (individuals) or EIN (businesses)
• Social Security Number (SSN) or Tax ID
• Business address
• Bank account details (routing + account number)
• Government-issued ID (photo upload)
4
Verify Your Identity

Stripe may ask you to upload a photo of your government ID (driver's license, passport). This is for anti-fraud protection.

5
Wait for Verification

Stripe reviews your information (usually 1-3 business days). You'll receive email when approved. Status shows in PayHeld settings.

Start Receiving Payouts

Once verified, you can receive payouts from completed projects. Future payouts are automatic.

Your Information is Secure

Stripe is PCI-DSS Level 1 certified (highest security)
PayHeld never sees your bank account or SSN
256-bit encryption for all data transmission
Used by millions of businesses worldwide

Payout Timeline & Processing

Standard Payout
• Day 0: Project approved, payment releases
• Day 1-2: Platform fees deducted, transfer initiated
• Day 3-7: Funds arrive in your bank account
• Email confirmation sent at each step
Instant Payout (PRO/BUSINESS)
• Click "Request Instant Payout" after approval
• Fee calculated and displayed upfront
• Funds sent to bank in <30 minutes
• Available 24/7, including weekends

Frequently Asked Questions

Ready to Set Up Your Payouts?

Complete your Stripe Connect setup to start receiving payments from completed projects.

Earnings & Payouts | PayHeld Documentation